Colliers’ biannual report analyses 20 locations within the UK against 24 indicators, including GDP, population growth, EPC rankings and leisure facilities. These indicators are grouped into five categories: economy, research and development, liveability, property and sustainability, to cover the various interests of residential investors. 

The report saw little movement in the top 10 locations, with the top four cities remaining the same: Edinburgh (first); Glasgow (second); Manchester (third) and London (fourth). Reading returned to the top ten, rising six spots to rank fifth, thanks in part to the number of new start-up businesses in the area, and its predicted GDP growth of 2.5 per cent per annum over the next five years. The location also tops the indicator for the number of leisure facilities including swimming pools, gyms and health businesses available to residents.

Across the top ten, the only other city which moved was Oxford, down four places to ninth due to lower GDP forecasts, an increase in income inequality and a decline in the number of new businesses created, Oxford moved below Milton Keynes in sixth, Belfast in seventh and Cambridge in eighth. Cardiff held onto tenth position for the second report in a row.

Andrew White, head of UK residential at Colliers, said: “After a number of years of turbulence and macroeconomic challenges, it’s interesting for investors to observe that there’s been a period of stability in the UK housing market, with locations that have been sure investments in recent times remaining at the top.

“The Scottish cities are continuing to top our ranking, most likely due to the affordability and strong economic qualities of the region, as well as the quality of life indicators we consider. London and Manchester continue to be high performers because of the population mix of professionals, service workers and students, along with the cities being the home to thousands of multinational companies, providing continuous employment opportunities. There are also lots of infrastructure and leisure benefits which make these cities attractive places to live.”

Oliver Kolodseike, a director in Colliers Research & Economics team compiled the report.

He added: “As is often the case with rankings that consider various data sources there can be a period of stability in the results. Often housing interventions from government can disrupt data, however if we consider the last six months of 2024 there were not many changes brought in by the new Labour Government that would have disturbed, positively or negatively, the housing market – and investor sentiment has remained fairly neutral. However with changes to stamp duty levels coming into effect in March – the same may not be said of our next analysis.”